Secure Family - Saving money for your Children’s future

Updated on September 18, 2009

"Yes! I'm in the money"

Children grow up so fast. Before you know it they are the same height as you or towering above you and they might start University, want football coaching, have an early wedding, need a deposit on their first property or want a car etc. Financially, we can support them, if we plan well and there are a few points below, which can help achieve this:

Child Trust Funds – In the UK, the government give £250 in form of a Child Trust Fund voucher to parents to open a special bank account for their child. Once the child reaches the age of 7, the government will give another payment of £250 or £500 if the parent(s) is on low income. Parents, family and friends can add up to £1200 to this account every year and there is no tax to pay on it for 18 years. If you make some regular payments, you are looking at a healthy sum in the future.

The child will be able to access the fund at the age of 18 and I’m sure a lot of working class parents will find this very helpful when that times comes, as it reduces or takes away financial pressure. Sadly, a lot of parents are still not taking advantage of this Government benefit.

I think this is a wonderful way to start saving for a child, I just hope the Government don’t stop it by the time I have a child of my own – knowing my Luck!

Regular Child Savings Accounts – You could also save on behalf of a child, in addition to the Trust Fund above or if you are not entitled to the Trust Fund (i.e. subject to immigration restriction) this could be a good option.

Check banks for the various offers. Some offer a high interest if you save regularly without withdrawing for 12 months, others will allow you to withdraw a limited amount monthly without it affecting the interest paid on the account. See More - Saving Plans for Children

"I'm bored! Why can't I spend my Trust Fund now?"

Save 10 % of Child Benefit – In the UK, the Government pay Child Benefit weekly to Parents for every child. The eldest child receives £20 every week and every other child receives £13 a week irrespective of whether the parents are working or not. If possible, set aside 10% or more of what you receive for the children. (I must admit the government are generous to children in the UK. (At present, all under 16s even travel FREE on buses. That’s some savings for the parents).

Personal Savings - Another alternative is to just leave money in an Account that you don’t make any withdrawals from. These days’ people have up to at least 3 Accounts. My Dad studied here in the 70s (Cambridge Scholarship) and worked p/time with my mum. After his studies, we all went to Africa and then I came back to the UK later. Long story short, my Parents used to send me cheques once in a while on their account in the UK even though they were no longer making Deposits. So, that’s another way of saving for your kids.

Piggy Bank

Useful Books

Teach your Child to Save – Finally, it is a good idea to encourage children to save for themselves at an early age. Get them to put money aside. Example, from a very young age you could buy them a piggy bank. If they have pocket money or money from friends and family – they could put some in the Piggy Bank. It’s a good saving habit to start them off with.

So, no matter how bad the economy is, you can be rest assured that your children will not go through financial difficulty in future and hopefully they will do the same for their kids.

Ps: I have mentioned benefits in the UK a few times, but I'm sure most countries have a similar benefit and can save accordingly. If your country doesn't, you still have 2 options above.

Comments 17 comments

This is very educative. Though they are facts of life but difficult to stick to. I have not heard of Piggy Bank before though we have similar things in my country. Thanks.

Pete Maida 7 years ago

That is a great benefit! That will be the day that you will see that kind of support from the US government. You see what is happening over health care.

andromida 7 years ago

I think you brought a very good point about encouraging children to save for the future.We also have similar things like piggy bank in our place,in fact I used to save money when I was just 10 or 11.:)

dohn121 7 years ago from Hudson Valley, New York

This is a great idea for any country in the world. I hope this program gains some popularity so that other countries will follow suit. Great hub! Thanks, Lady :D

fastfreta 7 years ago from Southern California

That ship has sailed for me, being that all my children are adults, however, I do have grandchildren, and will use these tips to help, their parents. Wow, what a great idea the UK has, about giving that Trust Fund Voucher. I wish we had that here in the U.S. Very good hub. Thanks Lady E for sharing this info.

Lady_E 7 years ago from London, UK Author

Cheers everyone for taking the time to read and comment.

* Philipo - The yellow pig in the Hub is an example of a Piggy bank. You put coins or notes in.

* Pete - It would be of great benefit if Obama could make Health Care free to everyone - A great relief to Americans.

* Andromida - good habit. Now you must be very good with money.

* Dohn - Yes, that would be nice. It's encouraging to citizens when the welfare of Children is the Country's priority.

I like this hub. Yes we should save money for our children's future. So that they can go to school, do the things what they like, anyway prepare everything what they need

hubpageswriter 6 years ago

Couldn't agree more; the importance of saving must always be there, and start from young. Hub up. :)

Lady_E 6 years ago from London, UK Author

Thanks Hubpageswriter.

Totally agree with you. :)

skye2day 6 years ago from Rocky Mountains

Lady-E hello hp angel. This is a terrific hub. The USA does not support any program like this. It would be an awesome jump start to help our children for the future. So many families are 'hurting' right now I think most can barely put food on the table let alone save money. I know I had plans to have allot of money at this age and I am more broke then I have ever been.

I pray our children will be plentiful and grow in Christ, peace and prosperity. It will not be handed to them unless there is a rich parent or relative. Then handing it to them is not all good. I am getting off track here. Tee He. Kids start saving for your parents future. (-; For reels.

The only guarantee is Jesus Christ. Saving money sounds so foreign to me these days. I am grateful Christ is my economy. I do not know how he works it out but he does deliver. Amen Lady_E. Love n Hugs, sister. Do come over for a visit.'Ready to fight the fight' I miss seeing you my friend.

Lady_E 6 years ago from London, UK Author

Hello Skye2day

I pray our children will be plentiful and grow in Christ, peace and prosperity too. Who knows, maybe someday US will support it. I must admit the new government are not in support of it and might change it.

Anyway, nice to hear from you. Hope to drop by again soon. I believe all is well with you and Hubby.

Best Wishes. :)

PaperNotes 5 years ago

Saving money for our daughter s actually a goal that my husband and I are working at. In fact, we are also teaching our little girl to already save money for herself. I am so proud of her because she really do not spend the money which she receives from her grandparents. She would spend some but enough only to buy a few candies.